Mixed Bag... The Apparel Industry

A Mixed bag the apparel industry

 BaBa’s Khadi line Baba Ramdev’s Patanjali plans to foray into the khadi market to sell its ‘Swadeshi’ line of branded khadi clothes in India. Its apparels will see a Diwali launch with 100 exclusive retail outlets. Besides, exclusive retail outlets, Patanjali also plans to sell apparels through the 15,000 KVIC outlets.

American brand Kenneth Cole has signed a 10-year licensing agreement with Brandzstorm India Marketing for men’s and women’s apparels, handbags and small leather goods. Brandzstorm will design, manufacture, distribute and retail Kenneth Cole products in India, Bangladesh, Nepal and Sri Lanka. This deal marks the continuation of Cole’s global expansion plans and establish footprints in key Asian markets. Brandzstorm India Marketing will launch the Kenneth Cole brand through leading multi-brand boutiques, shop-inshops, major department stores and e-commerce portals. The company also plans to open two flagship boutiques in the first year of operations.  a Cole Brandztorm

 Wholesaler reliance Reliance Retail is all set to enter wholesaling of fashion and lifestyle products through offline and online channels, with the company aiming to tap the unorganised bulk business of garments and accessories. This business will target millions of small and medium retailers nationwide to supply products in bulk, including its own brand. It also plans to service customers through a B2B portal. A team is working on a raft of private labels to sell to small and medium retailers. It is enrolling independent suppliers for the venture. It already sells garments through Reliance Market. The new venture will strengthen focus in the industry.

 Story of Decline India’s apparel exports’ downturn may continue to decline by 10 per cent in FY19. The introduction of GST has resulted in non-refund of several embedded taxes. Consequently, exports for FY 2017-18 declined from 17.38 billion in the previous year to USD 16.7 billion, i.e. by 4 per cent. The downturn continued in FY 2018-19 with a month on month decline of 8-10 per cent and it is expected to witness an overall decline by 10 per cent in FY19. India exports nearly 70 per cent of cotton garments and 20 per cent jump in cotton prices in last few months has hit exports severely. The industry is having talks with the Textile Ministry and the government has assured that embedded taxes will be refunded through the drawback route.

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